The biggest debuts for a U.S. company is almost here as Facebook readies itself for its Initial Public offering. The Social networking company is valued at one of the highest ever nearing for a young Tech company: $75 billion to $100 billion.
With 800 million+ users, its a country of its own. Facebook would file IPO around Wednesday of next week (i.e. Early Feb 2012). Morgan Stanley would be leading the deal, but it could fall into hands of Gold man sachs as well, who valued them last year.
Of course Facebook and other investors have refused to talk about the matter but its already going deeper as me news resources. People familiar with the matter have said the company is targeting an IPO sometime between April and June.
A $10 billion Facebook offering would rank 4th among IPOs for U.S. companies. It would beat the record set by Google Inc., which raised $1.9 billion in 2004 at a $23 billion valuation. At a $100 billion valuation, Facebook would be worth about the same as McDonald’s Corp. and nearly half of Google. The IPO will mint a new generation of Silicon Valley millionaires on the level not seen since Google’s offering. Some 3,000 people work at Facebook.
Like Google, Facebook’s revenue is driven by advertising. In 2011, Facebook achieved $3.8 billion revenue.
For last few years, Facebook was reluctant about going public but it all makes more sense now as they could start gaining some financial benefit from an IPO, rather than stay private but have to release its financial information.
This year, the overall market has risen, and on Friday other Internet stocks rallied on news that Facebook would soon file for a deal. “,” said Max Wolff, an analyst at GreenCrest Capital, which researches companies going public.
The recent IPO climate hasn’t been particularly strong, but the excitement around Facebook is still enormous.